Happy Square Outsourcing IPO Opens July 3 with ₹24.25 Crore Fresh Issue at ₹72 to ₹76 Price Band

Happy Square Outsourcing Services Limited, a rising player in India's staffing and outsourcing industry, is set to launch its initial public offering (IPO) with a book-built fresh issue of ₹24.25 crore. This IPO consists entirely of 31.90 lakh fresh equity shares, aimed at funding the company's growth plans and strengthening its balance sheet.

The subscription window for this IPO will open on July 3, 2025, and close on July 7, 2025, offering investors a limited opportunity to participate in the company's listing on the NSE SME platform.

The price band for the IPO has been fixed between ₹72 and ₹76 per equity share, representing the company's valuation expectations given its financial performance and market positioning.

Key Dates and Listing Details

The allotment of shares is expected to be finalised around Wednesday, July 9, 2025, while the tentative listing date is set for Thursday, July 10, 2025, on the NSE SME exchange. These dates are crucial for investors tracking the IPO cycle and preparing for potential trading opportunities on listing day.

Lot Size and Investment Requirements

The lot size for Happy Square Outsourcing IPO has been set at 1,600 shares per lot. For retail investors, the minimum investment requirement is 2 lots (3,200 shares) amounting to ₹2,43,200. High-Net-Worth Individuals (HNIs) need to invest in a minimum of 3 lots (4,800 shares), which amounts to ₹3,64,800.

This structure aligns with SEBI SME IPO guidelines, ensuring serious participation and providing access to both retail and larger investors willing to commit higher amounts.

Lead Manager, Registrar, and Market Maker

The IPO is being managed and marketed by CORPWIS ADVISORS PRIVATE LIMITED, serving as the Book Running Lead Manager (BRLM). PURVA SHAREGISTRY (INDIA) PRIVATE LIMITED acts as the registrar, handling allotment and refund logistics, while Giriraj Stock Broking Private Limited is designated as the Market Maker, ensuring liquidity on the SME platform post-listing.

These reputable intermediaries enhance investor confidence and demonstrate regulatory compliance throughout the process.

Business Overview and Company Profile

Happy Square Outsourcing Services Limited operates in the staffing solutions space, offering outsourced recruitment and manpower services across India. Its brand White Force Jobs is a leading job board in India, providing employers with access to over 1 million registered candidates.

White Force is positioned as a career destination for job seekers at every stage of their careers, offering career advice, news, and real-time connections with approved employers. The platform also provides unique communication and engagement tools that connect jobseekers and job agencies to ensure easy discovery of the right candidates.

This combination of online recruitment platform and outsourcing services creates a differentiated model that can scale effectively in India's rapidly growing employment market.

Promoter Background and Experience

The company's growth has been driven by its promoters, Shraddha Rajpal and Nalini Rajpal, who together bring over 10 years of experience in the staffing industry. Their vision has been to build an integrated staffing company with a strong value system, reliable processes, and a customer-focused approach.

This depth of industry experience is viewed as a strategic strength, giving the company insight into evolving employer needs, talent sourcing challenges, and technology trends in recruitment.

Financial Performance and Growth Trends

Happy Square Outsourcing Services Limited has demonstrated steady financial growth in recent years. The revenues from operations for the fiscal years ending March 31, 2025, 2024, and 2023 were ₹9,768.35 lakh, ₹6,954.31 lakh, and ₹5,280.11 lakh respectively.

EBITDA improved consistently over the same period, reaching ₹958.25 lakh in FY25, up from ₹669.89 lakh in FY24 and ₹294.13 lakh in FY23.

Profit After Tax (PAT) also saw strong growth: ₹590.34 lakh in FY25, ₹439.32 lakh in FY24, and ₹178.78 lakh in FY23.

These results suggest effective cost management, increasing operational scale, and growing market acceptance of the company's services.

Valuation Metrics and Industry Comparison

Despite the strong growth, analysts caution that the IPO may be fully priced. The company's pre-issue EPS is ₹7.02, while the post-issue EPS for FY24 is ₹5.09. The pre-issue P/E ratio stands at 10.82x, rising to 14.93x post-issue.

This is lower than the industry average P/E ratio of 40.00x, suggesting there could be relative value for long-term investors. However, this also reflects the SME nature of the listing and the company's current scale.

Key profitability metrics include:

• ROCE: 57.75% for FY24

• ROE: 61.97% for FY24

• RoNW: 61.97% for FY24

These high returns indicate operational efficiency and strong capital allocation, giving investors reason to see long-term potential despite near-term valuation concerns.

Grey Market Premium (GMP) and Investor Sentiment

The Grey Market Premium (GMP) for Happy Square Outsourcing IPO is ₹0.00, indicating no premium over the issue price in informal trading channels.

While GMP can sometimes predict listing gains, in this case, it suggests muted demand ahead of the listing. Investors are reminded that Grey Market trades are unregulated, can be speculative, and are not officially recognised.

Given these GMP trends, many analysts recommend avoiding the IPO for listing gains, as no significant upside is anticipated on day one.

Investor Considerations

For investors evaluating this IPO, several key factors stand out:

• Strong revenue and profit growth with improving margins

• Experienced promoters with proven industry expertise

• Fully priced valuations limiting short-term listing gains

• No GMP suggesting limited debut-day interest

• High minimum investment requirements restricting broader retail participation

These factors suggest the IPO may be best suited for long-term investors who believe in the growth of India’s staffing industry, rather than those seeking quick profits from listing gains.

Conclusion

Happy Square Outsourcing Services Limited offers investors an opportunity to participate in India’s expanding staffing and recruitment market through its NSE SME listing. The company demonstrates steady growth, high profitability ratios, and strong promoter leadership.

However, the fully priced valuation, high minimum investment requirement, and lack of Grey Market Premium mean that listing gains are unlikely.

Investors with a long-term horizon and belief in the structural growth of outsourcing may find the IPO worth considering once market conditions stabilize post-listing.

For those focused on short-term listing profits, expert recommendations lean toward avoiding the IPO for listing gains and adopting a wait-and-watch approach to see how the company performs once trading begins.

As the IPO opens on July 3, 2025, and closes on July 7, 2025, investors have time to evaluate the price band, company fundamentals, and market sentiment before making their decision.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control,  Anthem Biosciences.

The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.